# Stock recommendations for 10 October from MarketSmith India — retained record

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source: [news](https://highsignal.app/data/news) (news:india-mint-markets)  published 2026-10-12 00:30 ingested 2026-10-12 02:53

[original source ↗](https://www.livemint.com/market/stock-market-news/stock-recommendations-for-10-october-from-marketsmith-india-11791553489303.html)

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Stock market update: Indian equities staged a strong rebound on Friday, led by a sharp rally in IT stocks after Tata Consultancy Services' quarterly results, ending the market’s eight-week losing streak. The Nifty 50 rose 288.65 points, or 1.30%, to close at 22,520.45, recovering from Thursday's 52-week low, while the Sensex gained 879.09 points, or 1.23%, to settle at 72,472.33.
The Nifty edged up about 0.4% for the week, its first weekly gain in nine weeks. Softer crude oil prices also helped sentiment. IT was the standout sector, rising nearly 3%, as TCS gained about 4% after beating profit estimates and reporting that its AI services revenue had crossed 10% of total revenue. Hexaware jumped about 10% after signing an AI partnership with Anthropic. Banks rose more than 1%, led by Kotak Mahindra Bank, HDFC Bank, and Federal Bank, while ITC and Eicher Motors gained about 4% each.
Hospital stocks such as Apollo and Max Healthcare recovered sharply, but Metal and Pharma stocks lagged. Breadth was positive, with 2,183 stocks advancing against 1,393 declining and 108 unchanged. This week, investors will watch more quarterly earnings, crude oil prices, and foreign fund flows.
Two stock recommendations by MarketSmith India:
Buy: Allied Blenders and Distillers Ltd (current price: ₹712)
Why it’s recommended: Strong premiumisation strategy led by brands like ICONiQ, Sterling Reserve and luxury portfolio expansion, driving higher margins and value growth. Expanding export footprint across the US, Africa, UAE, and other international markets, supported by portfolio diversification and capacity investments.
Key metrics: P/E: 91.59 | 52-week high: ₹753.80 | Volume: ₹76.61 lakhs
Technical analysis: Bounce back from its 21-DMA
Risk factors: Highly regulated alcohol industry with state-wise policy changes, taxation risks, and licensing uncertainties impacting volumes and profitability. Exposure to raw material and packaging cost volatility (ENA, grains, glass bottles, PET), which can pressure margins.
Buy: ₹704-715
Target price: ₹820 in two to three days
Stop loss: ₹660
Buy: SG Finserve Ltd (current price: ₹676)
Why it’s recommended: Rapidly expanding supply-chain finance franchise serving MSMEs, dealers and distributors, supported by a large underpenetrated market opportunity and growing anchor partnerships. Strong AUM/loan-book growth aided by technology-led underwriting, factoring business launch, TReDS participation, and expanding funding relationships.
Key metrics: P/E: 27.14 | 52-week high: ₹727.45 | Volume: ₹56.58 crore
Technical analysis: Reclaimed 200 EMA
Risk factors: Concentration in supply-chain financing exposes the company to slowdown or stress among anchor corporates, dealer networks and MSME borrowers. As an NBFC, growth depends on continued access to bank funding and favourable interest-rate/liquidity conditions; tighter credit markets can affect expansion and profitability.
Buy at: ₹669-679
Target price: ₹770 in two to three months
Stop loss: ₹639
Nifty 50: How the benchmark index performed on 9 October
Indian equity markets ended Friday's session with strong gains, as broad-based buying lifted Nifty 50 by 288.65 points (1.30%) to close at 22,520.45, compared with its previous close of 22,231.80. The index opened at 22,314.95, touched an intraday low of 22,294.75 and rallied to a high of 22,580.75 before settling near the top of its trading range. Sectoral performance was largely positive, led by Nifty IT (+3.02%) and FMCG (+2.20%), followed by PSU Banks (+1.63%), Auto (+1.42%), and Private Banks (+1.32%). Oil & Gas was the only sectoral laggard, closing 0.09% lower. The broader market also saw healthy participation, with 2,183 stocks advancing, 1,393 stocks declining, and 108 remaining unchanged, translating into an advance-decline ratio of 1.57:1.
The Nifty 50 witnessed a strong recovery, gaining 288.65 points (+1.30%) to close at 22,520.45, forming a bullish daily candle after the recent sharp decline. Despite the rebound, the broader price structure remains bearish, with the index continuing to trade below its key 20-, 50-, 100-, and 200-day moving averages, indicating persistent selling pressure. The prevailing downward trendline and formation of lower highs and lower lows suggest that the ongoing recovery remains a counter-trend bounce rather than a confirmed reversal. The Relative Strength Index (RSI) improved to 36.50, recovering from oversold territory and moving above its signal average of 31.48, indicating easing bearish momentum and emerging buying interest. Meanwhile, the MACD remains in negative territory at -360.57, below its signal line at -331.79, and the narrowing negative histogram suggests that downside momentum is gradually moderating.
The index extended its bearish trajectory, breaching its previous swing low of 22,217 to register a fresh low of 22,180, signalling continued selling pressure and further deterioration in the near-term market structure. From a technical perspective, 22,200–22,000 remains a key support area, and a decisive breakdown below this range could intensify bearish momentum, potentially extending the decline toward 21,700–21,600. On the upside, 22,600–22,800 is expected to act as a significant resistance area, after the recent breakdown. Any recovery toward this zone could encounter renewed selling pressure.
How did the Nifty Bank perform yesterday?
The Nifty Bank opened positively at 54,746.25 and initially slipped to an intraday low of 54,617.20. Buying emerged from lower levels, lifting the index to a high of 55,419.30 before it closed at 55,256.65, gaining 741.60 points, or 1.36%. The index formed a strong bullish candle with a modest lower shadow, reflecting renewed demand after the recent decline. However, it remained below the 21-DMA (55,553.09) and substantially below the 50-, 100-, and 200-DMA, placed at 56,703.77, 56,595.12, and 57,020.07, respectively. The rebound is encouraging, but the broader technical structure remains weak. Sustained follow-through above the 21-DMA is necessary before the recovery can develop into a meaningful trend reversal.
The RSI improved sharply to 45.20 from the oversold region and moved above its signal average of 38.02, indicating strengthening short-term momentum. However, it remains below the neutral 50 level, suggesting that bullish conviction is still developing. MACD stayed below the zero line, reflecting a broader bearish trend, but the MACD line at −570.94 crossed marginally above the signal line at −583.32. The positive histogram reading of 12.38 confirms an early bullish crossover. Momentum indicators, therefore, suggest a relief rebound, although stronger price confirmation and sustained follow-through are required to validate a durable reversal.
Immediate support is placed near 54,600, followed by the recent swing-low zone of 54,000–53,800. A decisive break below this area could revive selling pressure and expose 53,000. On the upside, the 21-DMA near 55,553 is the first key resistance, followed by 56,000 and the 56,600–57,020 cluster, where the 50-, 100-, and 200-DMA are concentrated. In the coming sessions, Nifty Bank may attempt to extend its rebound if it sustains above 54,600 and crosses the 21-DMA with improving volume. However, volatile domestic and global cues could restrict momentum. Until the index reclaims 56,600–57,020, rallies should be viewed as recovery attempts within a broader corrective structure.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.
Trade name: William O’Neil India Pvt. Ltd.
Sebi Registration No.: INH000015543
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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